KfW Bankengruppe

06/12/2024 | Press release | Distributed by Public on 06/13/2024 06:22

KfW expands its engagement in Ukraine and signs new contracts worth EUR 190.65 million at Recovery Conference

  • Christiane Laibach: "You can truly feel that the conference was a success"
  • Strong focus on repairing and maintaining the energy infrastructure
  • Political commitment to the Ukrainian Business Development Fund

KfW expands its engagement in Ukraine. During the Ukraine Recovery Conference in Berlin, it concluded new contracts worth EUR 190.65 million. This involves new commitments to repair and restore energy infrastructure, vocational training and municipal infrastructure. KfW subsidiary DEG, which has been supporting its customers from the Ukrainian private sector since the start of the war, signed a contract for a new renewable energy project. KfW made this announcement at the end of the event on Wednesday.

The new contracts address the greatest needs in the ongoing war situation. In the energy sector, the focus is on repairing, modernising and protecting infrastructure via the Ukrainian network operator Ukrenergo. The aim is to stabilise and improve the current supply situation. In municipal infrastructure, the reconstruction of schools and vocational training facilities is central, as is water supply and wastewater disposal in Ukrainian cities. The promotion of private companies is highly relevant in order to keep the economy alive, secure jobs and generate income.

"You can truly feel that the conference in Berlin was a success,"

said Christiane Laibach, Member of KfW's Executive Board.

"The message is clear: reconstruction can only succeed if the international community of states and the private sector join forces. We have taken a major step forward with the political commitment to expand the Ukrainian Business Development Fund into a national development institution."

The fund provides low-cost loans to local companies. Following KfW's example in Germany, it will play a significant role in rebuilding Ukraine.

Since the start of the Russian war of aggression more than two years ago, KfW has committed more than EUR 1.4 billion for Ukraine on behalf of the German Federal Government and the EU. KfW has been a partner of Ukraine since the 1990s, and has access to a large network and lots of expertise in the country.

KfW has concluded the following contracts:

  • an agreement with the Ukrainian Ministry of Finance and the Ukrainian grid operator Ukrenergo for EUR 30.4 million to repair, upgrade and protect the energy infrastructure;
  • an agreement with Ukrenergo for EUR 15 million to repair, upgrade and protect the energy infrastructure;
  • an agreement with the Ukraine Ministry of Education for EUR 20.5 million to rehabilitate and equip vocational schools for vocational training, including for internally displaced persons and war veterans;
  • an agreement with the EU for EUR 100 million to repair, upgrade and protect the energy infrastructure;
  • an agreement with the EU for EUR 19.75 million to develop municipal infrastructure, in particular to upgrade the water supply and wastewater treatment systems in Chernivtsi.

KfW also signed the following:

  • a memorandum of understanding with the Ukrainian Ministry of Health and the Ukrainian Social Investment Fund on future cooperation regarding women's health;
  • two memorandums of understanding with the EU for EUR 55 million each, for the Ukraine sub-fund within the European Fund for Southeast Europe and the regional Green for Growth Fund for energy efficiency and renewable energy, both of which are geared toward the promotion of small and medium-sized enterprises.

KfW subsidiary DEG has agreed to conclude the following contract:

  • an agreement between DEG and the GOLDBECK SOLAR Group on ImpactConnect financing amounting to EUR 5 million for the development of solar power plants in Ukraine.

Further information on KfW's involvement in Ukraine can be found at:

www.kfw-entwicklungsbank.de/%C3%9Cber-uns/Ukraine/

www.kfw.de/stories/gesellschaft/gesellschaftlicher-zusammenhalt/ukraine/

Photos can be found under the keyword "Ukraine" at:

https://bildarchiv.kfw.de/